The Social Responsibility of a BusinessWhat is the Social Responsibility of a Business?In order to answer that question, defining social responsibility and business must be answered first. Corporate social responsibility refers to the organization’s actions that benefit both internal and external stakeholders. Business, on the other hand, is a type of an organization that exhibits the following characteristics: (1) made up of management, shareholders, and employees, (2) pursued common goal to generate profit, and (3) linked to the environment. According to Milton Friedman, he stated that “business as a whole” cannot have responsibilities and that “only people can have responsibilities” (1970). His main concern is directed to corporation’s social responsibility. In legal sense, a corporation is a person with similar rights and responsibilities to that of an individual. Its only social responsibility is to maximize profits while complying with the law, engaging actions ethically in trade norms, and carrying out business “without deception or fraud” (Friedman, 1970).
As Friedman suggests, engaging in socially responsible activities may lead agency problems, misallocation of resources, and a cover-up of self-interests. First, the purpose of selecting a corporate executive is to be the agent of the shareholders; therefore, managers must pursue profitable activities to align with shareholder’s objectives. Second, “CSR involves using the firm’s resources to advance societal interests” (Waldman, 2008, pg. 118). Application of CSR imposes costs to different stakeholders. Any social activity results in spending other people’s money. For example, increasing product price will result in customer’s expense. Stakeholders can decide what to do with their money, for instance, they can give it to a charity. Finally, corporations may act socially responsible to cover its real-intent of benefiting their self-interest. Thus, a manager’s social responsibility is to boost company earnings. (Friedman, 1970)
The Role of the Firm in the Future
A manager’s social responsibility does not always coincide with employee success. When a manager is successful, he or she must meet the agency’s specific goals and objectives.
A typical manager in a corporate setting would act as a social organizer—but he or she will often also be an agent. In an agency setting, management should plan for the future—perhaps by monitoring progress in a company’s investment or operating strategy.
Some managers must be socially responsible. Their social responsibility also requires them to have high ethical standards. Although a corporate social responsibility does not equal a human or human-centered moral attitude, it may represent a moral commitment that is important to employees. For example, when management’s company may act to encourage the transfer of assets, people can make a difference. Conversely, employees may be influenced or offended, but this should always be an agency moral responsibility. An agency-in-suit social responsibility may sometimes align in favor of employees.
Internal Relations, Workplace Health and Career Development
A management-in-suit social responsibility may lead employees to work with social actors and to interact through group chat, call, etc.
B. Social Role in Corporate Organizations
A management-in-suit social responsibility requires people to engage in socially responsible activities so that decisions about working with them can be made voluntarily.
When these social activities are socially responsible, it is also important that employees not waste valuable time. There exists a tendency to do this because employees are more likely to waste time doing what is not needed and to be distracted.
C. Social Role in the Workplace
A managerial-in-suit social responsibility is a role that creates a sense of duty and social responsibility for all employees. Employees will do anything for the benefit of their family. This social role involves creating and sustaining social relationships with others, especially if they are involved with others.
Consequently, an employee who is socially responsible will benefit from the time he or she spends with others.
D. Self-Discipline, Respect for Company Ownership and Responsibility
Management-in-suit social responsibilities show the value of working with others in a way that promotes and encourages the maintenance of a healthy work environment.
An official social role means that employees must be responsible for their own performance. For managers, that includes handling social responsibility. A corporate social role will also include a number of responsibilities for individual members of a community—employee management, employees and the general public—such as personal support staff, caregiving, education, support staff, and professional development staff. Individuals will also meet for lunch with management to discuss family issues including food and drink and other non-alcoholic beverages with their family members—employee health professionals, managers, supervisors, and managers who may be working on the same project—and to discuss their personal beliefs about work responsibilities. (Waldman, 2008, pg. 110). A manager’s social responsibility will also help him or her manage relationships over time with clients.
For example, in an employee working on a child care center management-in-situations may feel a sense of responsibility in regard to the child’s care. A management-in-suit social role may focus on the child’s personal development. An employee working on an agency-managed family planning business management-in-situation would work with the parents or the child’s teachers on how to manage their own children in an environment consistent with the work environment.
Employees who are responsible for their own personal health may also have a social responsibility in regards to